5. On the floor of a futures exchange one futures contract is traded where the long...
5. On the floor of a futures exchange one futures contract is traded where the long counterparty is closing out an existing position while the short counterparty to the contract is opening a new position. What is the resultant change in open interest?
Homework Answers
The resultant change in open interest will be nil as when one counterparty closes the existing position and other counterparty opens new position with the same no. of contract, it doesn't create any impact on open interest.
Add Answer to:
5. On the floor of a futures exchange one futures
contract is traded where the long...
(1pt) One futures contract is traded where both the long and short parties are closing out...
(1pt) One futures contract is traded where both the long and short parties are closing out existing positions. What is the resultant change in the open interest? No change Decrease by one Decrease by two Increase by one (1pt) When the strike price increases with all else remaining the same, which of the following is true? Both calls and puts increase in value Both calls and puts decrease in value Calls increase in value while puts decrease in value Puts...
Emergency, please help. 4. A limit order A. Is an order to trade up to a...
Emergency, please help.
4. A limit order A. Is an order to trade up to a certain number of futures contracts at a certain price ODO B . Is an order that can be executed at a specified price or one more favorable to the investor C. Is an order that must be executed within a specified period of time D. None of the above ald 5. One futures contract is traded where both the long and short parties are...
A futures contract on copper traded at the Chicago Mercantile Exchange has a denomination of 25,000...
A futures contract on copper traded at the Chicago Mercantile Exchange has a denomination of 25,000 pounds. Today you enter into a long futures position of 10 contracts on copper at $3.43 per pound, maturing in 6 months. If copper is trading at $3.75 at maturity, what is your net profit from this position?
Multinational Limited previously sold a three-year Treasury bond futures contract on the ASX Trade 24 and...
Multinational Limited previously sold a three-year Treasury bond futures contract on the ASX Trade 24 and now wishes to close out its open position on the delivery date. Which of the following statements relating to the closing out of a futures position is not correct? Multiple Choice A new ‘buy’ contract must have the same delivery date as the original ‘sell’ contract. The company may choose to deliver the specified Treasury bonds in settlement. The clearing-house acts as counterparty to...
QUESTION 13 A futures contract on copper traded at the Chicago Mercantile Exchange has a denomination...
QUESTION 13 A futures contract on copper traded at the Chicago Mercantile Exchange has a denomination of 25,000 pounds. Today you enter into a long futures position of 10 contracts on copper at $3.33 per pound, maturing in 6 months. If copper is trading at $3.24 at maturity, what is your net profit from this position? QUESTION 14 You expect that the stock of GoPro, currently trading at $70 per share, will be volatile in the next three months, and...
Micro E-mini S&P 500 Futures contract
You have \(\$ 100,000\) to invest today. You are bullish about the stock market and you think that the S\&P 500 index is going up. You want to leverage your investment by taking a long position in S\&P 500 index futures.Micro E-mini S\&P 500 Futures contractThere is a new futures contract on the S\&P 500 index with a lower contract multiplier-only 5 times the index. You are using this contract to implement your strategy. You chose the contract expiring on...
15.8. Bob takes a long position in one contract of S&P 500 futures. Each contract is...
15.8. Bob takes a long position in one contract of S&P 500 futures. Each contract is for the delivery of 250 units of the index at a price of 1800 per unit. The initial margin is 10% of the notional value and the maintenance margin is 80% of the initial margin. Interest on the margin account is paid at an annual continuously compounded rate of 5%. The first mark-to-market occurs one week (7 days) after the sale of the contract....
Please show work 1) A trader entered into a long S&P index futures contract when the...
Please show work 1) A trader entered into a long S&P index futures contract when the futures price is 3,112 and closed it out when the futures price is 3,075. What is his gain or loss in dollars? The contract multiplier is $250. Write your answer in the format as 10000 or -10000, no dollar sign, no comma. 2) A trader entered into 2 short British Pound futures contracts @ $1.6 per GBP, and closed out his position @ $1.71...
On 1 January you sold one March maturity S&P/ASX 200 index futures contract at a futures...
On 1 January you sold one March maturity S&P/ASX 200 index futures contract at a futures price of 700. If the futures price is 800 on 1 February, what is your profit? The contract multiplier is $25. In other words, the contract calls for delivery of $25 times the value of index. 1 index point move translates into a $25 change in the value of the contract. a. $100 b. -$100 c. $700 d. $2,500 e. -$2,500 Which one of...
18. You sell one December gold futures contract when the futures price is $1,010 per ounce....
18. You sell one December gold futures contract when the futures price is $1,010 per ounce. The contract is on 100 ounces of gold and the initial margin per contract that you provide is $2,000. The maintenance margin per contract is $1,500. During the next day the futures price rises to $1,012 per ounce. What is the balance of your margin account at the end of the day? A. $1,700 B. $2,200 C. $1,300 D. $1,800 19. A hedger takes...
Emergency, please help.
4. A limit order A. Is an order to trade up to a certain number of futures contracts at a certain price ODO B . Is an order that can be executed at a specified price or one more favorable to the investor C. Is an order that must be executed within a specified period of time D. None of the above ald 5. One futures contract is traded where both the long and short parties are...
QUESTION 13 A futures contract on copper traded at the Chicago Mercantile Exchange has a denomination of 25,000 pounds. Today you enter into a long futures position of 10 contracts on copper at $3.33 per pound, maturing in 6 months. If copper is trading at $3.24 at maturity, what is your net profit from this position? QUESTION 14 You expect that the stock of GoPro, currently trading at $70 per share, will be volatile in the next three months, and...
15.8. Bob takes a long position in one contract of S&P 500 futures. Each contract is for the delivery of 250 units of the index at a price of 1800 per unit. The initial margin is 10% of the notional value and the maintenance margin is 80% of the initial margin. Interest on the margin account is paid at an annual continuously compounded rate of 5%. The first mark-to-market occurs one week (7 days) after the sale of the contract....
18. You sell one December gold futures contract when the futures price is $1,010 per ounce. The contract is on 100 ounces of gold and the initial margin per contract that you provide is $2,000. The maintenance margin per contract is $1,500. During the next day the futures price rises to $1,012 per ounce. What is the balance of your margin account at the end of the day? A. $1,700 B. $2,200 C. $1,300 D. $1,800 19. A hedger takes...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago